Premium Factors

Car insurance premiums are the amount drivers pay to the insurance company to protect them from financial liability should they cause bodily injury or property damage to others.

How much of a premium you pay for car insurance is contingent upon many factors likely beyond your control such as gender and age, where you live, and very importantly, your driving history. Still, other factors such as your credit rating, accidents, and DUI/DWI convictions are well within your influence and you can do yourself a service by concentrating on them instead.

Car insurance premiums are also highly dependent upon how much coverage you carry. For example, if you carry comprehensive and/or collision coverage then your premium will far outstrip a plan where in you only carry your state’s minimum liability requirements.

You can also learn about how newly insured or inexperienced drivers pay more, how driver’s license points affect your premiums, how much a new car vs. used car costs to insure, and how your car’s theft risk can result in higher car insurance costs.

It is important to understand the factors that affect car insurance premiums so you can take proactive steps needed to lower premiums as much as possible.